How Important is Environmental Sustainability in the Global Real Estate Industry?



Keeping one step ahead in the uncertain and competitive real estate field can be challenging. Sustainability is no longer a niche market. Consumers demand and expect it in almost every aspect of their lives. Professional sports leagues like the NFL are now implementing formal sustainability initiatives. Environmental sustainability has gained global importance in recent years within the context of ESG (Environment, Social, and Governance).

Similarly, in order to make more informed real estate investment decisions, real estate investment managers need a better understanding of environmental sustainability in the realm of global real estate markets when developing their global real estate investment portfolios. Let us explore how important real estate sustainability is in the global realm.

Why should the real estate industry adopt sustainability?

Recent IPCC reports have already confirmed that extreme, catastrophic weather conditions caused by our changing climate will occur much sooner than expected, implying that the real estate industry will face rapidly increasing physical threats.

Investors, owners, and tenants are showing an increasing interest in sustainability. In addition, investors, policymakers, and the general public are all increasingly calling for changes to the business models of real estate companies. Proposals for mandatory non-financial due diligence and upcoming legislation such as the EU taxonomy and the SFDR will contribute to increasing demands for transparency in non-financial reporting and higher levels of accountability.

Business professionals in every sector must incorporate sustainability and climate factors into important choices. For example, the real estate sector and investors would benefit financially and economically from market decisions guided toward sustainable, climate-friendly outcomes, especially over the medium and long term.

Over the past ten years, sustainable real estate has gone from being niche to being a mainstream commodity for new real estate developments and investment solutions. An increasing percentage of worldwide development projects are predicted to focus on green buildings. New development projects that receive investment from investors must either have a sustainability rating or be eligible for one.

The importance of environmental sustainability in the global real estate industry

Let’s break down the importance of sustainability in real estate further.  

  • People want to adopt green practices

According to a recent Nielsen survey, 81% of consumers worldwide believe it is extremely important for businesses to have environmental improvement as a goal. Green building took off in the early 1990s, becoming more widely known about a decade later. However, it had long been hailed as a unique feature. One that was above and beyond the norm.

It is now considered mainstream, and many people expect sustainability in their homes and commercial buildings. Some governing bodies even require resource-saving measures to be implemented. Homeowners want to pay more for environmentally friendly features such as energy-efficient appliances and windows, as well as features promising improved air quality.

With younger generations entering the housing market, this socially conscious group is looking for green features and built-in sustainability.

  • Foster improved health

Green structures are also beneficial to your health. Traditional building and furnishing materials contribute to pollution and affect human health. The steps to producing green buildings, although they are very little, go a long way in making a considerable change. You must embrace green buildings and utilise environmentally friendly materials to help clean the air we breathe. It will not only promote a healthy environment in your home, but it will also benefit the natural environment around you. A sustainable real estate online course can help you learn ways to introduce greener practices and achieve improved health.

  • Minimise waste

The term “sustainable waste management” refers to the collection, handling, recycling, and disposal of different waste without endangering the environment, human health, or future generations. It encompasses all operations connected to waste management from creation through to disposal. It’s crucial to be aware that there are many different kinds of waste, including municipal waste, waste from homes, businesses, and construction sites; electronic or “e-waste,” such as computer components; and radioactive waste, among many other types of waste.

Sustainable waste management aims to produce the least amount of garbage whilst consuming fewer natural resources and reusing as many natural resources as possible. Real estate generates a lot of waste globally. We may address this issue by using renewable resources and materials in sustainable construction.

  • Reduced expenses

It is beneficial for the environment to use recycled materials when building. Additionally, energy consumption is reduced by using well-insulated windows, insulated air conditioning units; and insulated ceilings and walls in sustainable buildings. Long-term energy expenses have significantly decreased due to sustainable company strategies.

According to the production schedule, specific rapid actions like switching to energy-efficient lights save long-term power expenditure. Monthly utility costs are decreased by using energy-efficient equipment and solar and wind power. Reducing energy use is good for businesses since it makes them more effective all around.

  • Future proof the real estate business

Sustainability is the future of almost every sector, including residential redevelopers. Natural resource consumption is at an all-time high, and governments worldwide are working hard to limit the use of these otherwise scarce resources whilst reducing our carbon impact. A global response to environmental awareness has resulted in initiatives being put in place to reduce the use of natural resources.

Investors that begin incorporating the concept of sustainable real estate development into their current exit strategy should stay at the top of their industry and at the top of buyers’ wish lists—for the present and for a very long time to come.


The future of real estate development is sustainable. Builders will increasingly turn to green real estate development to cut their carbon footprint and create more energy-efficient homes. But it’s important to remember that the future is now. Sustainable real estate development isn’t a fad.

The goal of technology is to improve our everyday lives, and sustainable real estate development is no different. Every year, new technologies enhance the growth of green real estate, and this year is no exception. Therefore, if investors want to be as environmentally friendly as possible, they must adopt the most recent technologies.

If nothing else, it’s essential for the industry’s future and something that every home redeveloper must consider in some way. Enrol in a sustainable real estate online course to learn the right practices for sustainable real estate management. Implement the right steps and be ahead of the game.